The Yen remains on a back foot into the new trading week as the gains in Asian equity markets overnightcontinued to extract safe haven interest from the Yen. It is also possible that a further narrowing of Japan’scurrent account surplus has added to the downward track in the Yen this morning. Ideas that the US will continueto taper and that the UK is in a similar position leaves the Japanese economy in a less beneficial position and thatcould pave the way for a decline to 97.17 and perhaps even a slide to lower support down at 96.72.
Technical Outlook: Momentum studies are trending lower from high levels which shouldaccelerate a move lower on a break below the 1st swing support. The close below the 9-day moving average is anegative short-term indicator for trend. The market tilt is slightly negative with the close under the pivot. The nextdownside objective is now at 96.77. The next area of resistance is around 98.24 and 98.97, while 1st support hitstoday at 97.14 and below there at 96.77.